Buying a Rental property can be very economic yet tricky at the same time. When you rent a house make sure you don’t have any regrets of any sort. Having regret will make you sour about the whole issue if renting and hence tarnish your experience. For Example, When the tenants come looking for the house for rent in Vijayawada, make sure to not fall whatever nonsense they feed you with. Renting a house may seem very money making but it needs a lot of study. Conduct your own research about the tenants and be clear and firm as to what you want. If possible make a sample rental agreement and go through it with the tenant. Being a landlord is going to be a new yet different experience, so in order to avoid any shocking surprises, there is a list of things that you wish you knew before you bought the rental property.
Let us take a look at these for rental property
- Property taxes can be a nightmare:
The rental market is never stable; it is always going up and down. So, if the property taxes go up, it can be a huge down for you. The property tax is levied on any property the owner doesn’t live in, so it would include the rented property. The rent is generally set in accordance with the old mortgage value, but when suddenly the property tax rises, you might be at a huge financial crisis. You cannot raise the rent amount unless the tenant agrees to it or till the end of the fixed period.
- Not all tenants are good:
When you bought the rental property, you were somewhere prepared that the tenants that move out will have damaged the house in some ways. But if you are unfortunate to have a tenant that cares less about the property, you might have landed yourself in a problem. Fresh paint and cleaning the rooms and old furniture isn’t the only thing you will have to do before you find a new tenant. There are some that can leave the house door less, without doors, the windows may be broken, the furniture may be damaged, the walls may have holes and many such things you can’t even think off. You cannot just walk into the house when the tenants are staying; you have to send a notice before hand. But do what it takes and visit more frequently to avoid major losses.
- Not all tenants are bad:
One bad experience doesn’t mean all experiences will be bad. So, if you want to avoid such major repairs, make sure the tenants you choose are worth it. Ask for the tenants bio data, interview him/her/them if need. There are tenants that take care of a rented house like it is one of their own, they decorate it during festivals, invite you to such occasions, they are regular with the rent. When you visit, the house is always clean and tidy inside out. Such tenants are good to have and leave a very less wear and tear to be take care of after they leave.
- Be the landlord you would like to meet:
landlord is often looked upon as the bad guy, but that is far from true. The landlord has a really difficult job and you will know when you become one. It is not a work of the faint hearted. There will be many horrible experiences and issues to deal with but buying a rental property gives you financial freedom and some profit. It teaches you a lot more than just what the work of the landlord is. It teaches you to value good people or tenants, to fight for what is right and most importantly, know everything before you take up any kind of responsibility so that you don’t have to feel that you wish you knew certain things before you took its responsibility.